Canadian Explorer ReconAfrica Secures $27 Million to Fast-Track Namibian Well Test as Company Deploys Takeover Defense
Canadian explorer Reconnaissance Energy Africa has completed a major financing round, raising approximately $27 million in gross proceeds to fund critical exploration activities across its portfolio in Namibia and Gabon. The company announced that it successfully closed its listed issuer financing exemption offering for aggregate proceeds of 36.8 million Canadian dollars, including the full exercise of an over-allotment option, with BW Energy Limited acquiring roughly six percent of the total offering.
The financing will expedite activity across the company’s portfolio, including a production test to determine the producibility of discovered reservoirs in the Kavango West exploration well onshore Namibia and exploration of the Ngulu Block offshore Gabon, which includes the Loba discovery. The funds will be allocated for conducting an extensive production test and installing production casing at the Kavango West discovery well, advancing operations to spud the Kavango appraisal well, reprocessing seismic data at the Loba discovery, and general corporate purposes and working capital.
In a parallel strategic move that underscores the rising value of its Namibian assets, ReconAfrica has deployed a classic corporate defense mechanism to guard against potential hostile takeover attempts. The company announced that its board has instituted a shareholder rights plan, commonly known as a “poison pill,” designed to provide time to assess any unsolicited takeover bids and ensure fair treatment of all shareholders.
The rights plan, which is subject to approval by the TSX Venture Exchange and requires shareholder ratification at the company’s annual general meeting scheduled for February 19, 2026, will remain in force for an initial three-year term if endorsed. Under the plan’s structure, if a triggering bid occurs, rights would be issued to existing shareholders to purchase additional shares at a deep discount, dramatically diluting any hostile acquirer’s stake. Odyssey Trust Company has been appointed as the rights agent to administer the plan.
The offering was conducted on an underwritten basis led by Research Capital Corporation as lead underwriter and sole bookrunner, on behalf of a syndicate that included Canaccord Genuity Corp. and Haywood Securities Inc. ReconAfrica issued a total of 38,736,945 units at a price of 0.95 Canadian dollars per unit, with each unit comprising one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of 1.20 Canadian dollars at any time up to 36 months from closing.
BW Energy Limited acquired the shares indirectly through its wholly-owned subsidiary BW Energy Services Limited. Following the closing, BW Energy beneficially owns 26,338,780 common shares and 25,180,890 common share purchase warrants, representing approximately 6.96 percent of issued and outstanding shares on an undiluted basis.
Source: africaoilgasreport.com, namibiaoilandgas.com
